What should we price this drug based on the competition and insurance/copay factors for patients

Case Question 1: Market sizing, pricing of a drug. This is the question: A large pharma company is expecting EMA approval for a therapy that treats lower respiratory infections i.e. Drug Y (which is an antibiotic). In about six months the division will receive EMA approval to launch drug. Despite this apparent good news from the EMA, the EU division is concerned about the market potential for drug Y and it’s ability to reach key prescribers in the therapeutic category. You have been asked to help them determine the commercial value of this product and the likelihood of use, and determining whether they should: Launch alone Co-market with a partner (Joint venture) Sell or license the drug The concerns over market potential centre on whether the drug can gain adequate competitive advantage in a market segment having a dominant, patent-protected competitor and low cost generic antibiotics. Additionally, a higher technology antibiotic, which appears to offer therapeutic advantages was recently introduced by a competitor. Case Question 2: Putting a drug into a market, IP issues and should they proceed or not. Case Question 2 was more difficult than case question 1.